← Glossary
VC & Fund Mechanics
Power law
The reality that a tiny number of investments return most of a fund — winners pay for everything else.
Why it matters
It's why VCs chase outliers, not safe bets: a deal that can only return 2x doesn't move a fund built on the few that return 50x.
Hear it from people who've done it
Get the real-world version of "Power law" drawn from hundreds of conversations with founders and investors.
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Episodes on Venture Capital
Investment Thesis with Kali Norman · 24 July 2026
Alex Khor's Investment Thesis
First Cheque with Cheryl Mack & Maxine Minter · 19 July 2026
What Makes a Founder Worth Backing at Pre-Seed? With Ilana Elbaz | GTM at Deel
First Cheque with Cheryl Mack & Maxine Minter · 5 July 2026
Why Australia Builds More Unicorns per Dollar Than Anyone (Replay) | Ben Grabiner, Side Stage Ventures
Related terms
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